Products, services and brands: building customer value - Services Marketing

6 important questions on Products, services and brands: building customer value - Services Marketing

Name the 4 characteristics in designing the business program?

1. Service intangibility
2. Service inseparability
3. Service variability
4. Service perishability

What are the four characteristics that affect marketing of services?

1. Intangible; it's difficult to evaluate before purchase, because there is no physical possession. It's hard to advertise the real value, price etc. Service processes can be copied.

2. Variability (heterogeneity); standardisation is minimal.

3. Inseparability; production and consumption happen simultaneously. It's difficult to replicate.

4. Perishability; services cannot be stored for later sales, mass production is not possible, it cannot be re-used etc.

The book distinguishes three types of service marketing: internal, exernal and interactive marketing. What's the difference?


We can also classify services based on the theory of Wirtz and Lovelock. They distinguish the following four service types, elaborate on this.
1) People-processing
2) Possession-processing
3) Mental stimulus processing
4) Information processing

1) People-processing
- services directed at people's bodies
- people & tangible actions
- E.g. Healthcare, transportation, lodging (onderdak)

2) Possession-processing
- services directed at physical possession
- possession & tangible actions
- freight transportation, repair and maintenance, laundry and cleaning.

3) Mental stimulus processing
- services directed at peoples minds
- People & intangible actions
- Education, advertising/PR, psychotherapy.

4) Information processing
- services directed at intangible assets
- Possessions & intangible actions
- Accounting, Banking, Legal services

Of which 5 elements does the service profit chain consist?

1. Internal service quality
2. Satisfied and productive service employees
3. Efficient service delivery
4. Satisfaction of loyal customers
5. Sustainable service growth and profit

What is interactive marketing?

Dependence of the service quality on the seller-buyer interaction during the service.

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